Chinese lithium giant Ganfeng raises $627 million for capacity expansion and other purposes
(Kitco News) - China’s Ganfeng Lithium Group, the worlds largest lithium metal producer, announced today that on June 10, 2021 (after trading hours), the company entered into the placing agreement to place 48,044,400 new H Shares at the placing price of HK$101.35 per H Share, for the aggregated gross proceeds of approximately HK$4,869.30 million (approximately $627 million).
The company said it intends to use the net proceeds of HK$4,854.75 million (approximately $626 million) from the placing for capacity expansion construction and potential investment (80% of net proceeds), and replenishment of working capital and general corporate purpose (20% of net proceeds).
Ganfeng noted that capacity expansion construction is mainly involved in the offshore lithium resources projects of the company. Potential investment of the lithium resources may include ores, brine, lithium clay, etc. The company added it plans to use the net proceeds in the following one to two years.
Ganfeng Lithium Group's lithium resources are located across the world and it is the only company within the global lithium industry that has the commercial scale technologies to extract lithium from brine, ore and recycled materials. The group’s lithium compound capacity ranks third worldwide, first in China, and the company is the world’s largest lithium metal producer. The group has complete battery manufacturing and recycling technology.